Zegna Group: Americas Strong, China Down, Tariffs Addressed

Americas Leads Zegna’s Growth

The Americas stays Zegna Team’s best-performing (and second-largest) region for all 3 brand names, stated Durante. Profits were up 9.5 per cent to EUR125 million. The area published solid organic growth, Durante stated, highlighting the Zegna brand as the standout with double-digit brand growth.

China Sales Decline; APAC Mixed

Greater China incomes were down 11.6 percent to EUR123.3 million. “We continue to have a sensible technique on the region, even if we are beginning to see some first proof that our activities are settling,” stated Paola Durante, principal of outside connections, on the revenues call. “We are experiencing continuous favorable responses to new product launches [and] to brand-new efforts.” The rest of APAC made out much better, with profits up 6.5 per cent to EUR55.9 million. The positive performance was driven by Japan, where all 3 brand names carried out well, with an increase from Singapore too, Durante claimed.

Brand Performance Overview

By brand name, Zegna was up 4.7 per cent to EUR250.8 million; Thom Browne is up 3.5 per cent to EUR46.2 million; and Tom Ford Style increased 10 per cent to EUR48 million. Group wholesale earnings went down 19.8 per cent, driven by a drag from Thom Browne, whose wholesale earnings were down 48 per cent as the company proceeds its efforts to enhance the network.

Tariff Impact and Response

Concerning the 10 per cent rise in tariffs on US imports, Tagliabue guaranteed investors that Zegna Team will certainly take the “needed activities” in response. For Winter months 2025, the business is thinking about a mid-single-digit boost in prices in the US.

Direct-to-Consumer Sales Surge

Ermenegildo Zegna Group, the owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, claimed an increase in direct-to-consumer sales throughout all three brands assisted to balance out a depression in wholesale earnings in the very first quarter of monetary 2025. Shares rose 2 percent in pre-market trading.

Greater China revenues were down 11.6 per cent to EUR123.3 million. The rest of APAC fared much better, with earnings up 6.5 per cent to EUR55.9 million. Profits were up 9.5 per cent to EUR125 million.

Resolving the tariff circumstance, group COO and CFO Gianluca Tagliabue offered discuss “the topic that has actually been on the top of everyone’s schedule over the previous week”, as he placed it. He disclosed that, considering that the beginning of April, Zegna Group has not seen significant modifications in the general demand globally throughout any type of tasks or brands. “On the other hand, if anything, we have actually seen some enhancements, particularly in the Zegna brand alongside the launch of the Spring/Summer 2025 decrease, which I believe is more pertaining to the effective launch of the summer drop I simply discussed. This holds true worldwide, however particularly in the US,” he said.

Tagliabue included that Zegna will certainly not think about changing its sourcing from Italy due to the tolls, keeping in mind that being ‘Made in Italy’ is an essential column of the brand name. “That is not possible.”

Group revenue was down 1 percent year-on-year to EUR458.8 million in the quarter. By brand, Zegna revenues boosted 3.6 per cent year-on-year to EUR292.9 million; Thom Browne was down 18.9 percent to EUR64.2 million; and Tom Ford earnings enhanced 3.8 percent to EUR67.5 million, adhering to Haider Ackermann’s widely applauded March launching.

DTC sales across the group were up 5.2 per cent year-on-year to EUR345.1 million. By brand, Zegna was up 4.7 per cent to EUR250.8 million; Thom Browne is up 3.5 per cent to EUR46.2 million; and Tom Ford Style climbed 10 per cent to EUR48 million. However, group wholesale revenues dropped 19.8 percent, driven by a drag from Thom Browne, whose wholesale revenues were down 48 percent as the firm continues its initiatives to streamline the network.

“We are motivated by these early positive results, yet additionally mindful of the current geopolitical and financial uncertainties. And while we have not observed substantial changes in clients’ behaviour throughout our brand names, we continue to be cautious, dexterous, and focused on our tactical concerns knowing that what absolutely matters is the toughness of our brands and our undeviating dedication to remaining close to our customers,” chairman and chief executive officer Ermenegildo “Gildo” Zegna said in a declaration.